IEX — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

EXCHANGE LIMITED · MR. AMIT KUMAR – HEAD OF MARKET OPERATIONS,

MR. AMIT KUMAR – HEAD OF MARKET OPERATIONS, NEW PRODUCT INITIATIVES AND EXCHANGE TECHNOLOGY – INDIAN ENERGY EXCHANGE LIMITED MS. APARNA GARG – HEAD, INVESTOR RELATIONS AND CORPORATE COMMUNICATIONS – INDIAN ENERGY EXCHANGE LIMITED MR. ADITYA WALI – INDIAN ENERGY EXCHANGE LIMITED

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to Indian Energy Exchange Limited Q4 FY '25

We have our first question from the line of Rushabh Shah from Buglerock PMS.

Rushabh Shah

I had three questions.

In the previous call, you mentioned that there are many steel plants and cement industry and aluminum industries who have large captive generation capacities with them.

So they are also required to purchase the RECs?

How big could this market be in the next 4 to 5 years?

What is your vision related to this market?

Satyanarayan Goel

Yes.

REC compliance by the industries who have captive generation is a requirement.

But unfortunately, enforcement of that is not happening at the moment.

And these industries also have taken up with the government that there should be some relaxation for them because otherwise, it will increase the cost of production.

So this issue has not been resolved.

As of now, as per the prevailing notifications, they have to comply with the RPO compliance requirement.

And if that is implemented, the opportunity is very large.

I mean we have not calculated that, but we have estimated that the existing RECs will not be able to meet that requirement.

Today, we have an inventory of about INR4 crores RECs, so even the requirement is much more than that.

Rushabh Shah

But there's no update on the notification, right?

Satyanarayan Goel

There’s a notification, but then there is no penalty under the notification.

So as of now, enforcement of that notification, particularly for the industries, that is not being ensured.

Rushabh Shah

Okay.

Sir, as a technology platform where buyers and sellers meet, what challenges do you face in a business like IEX?

Satyanarayan Goel

On IEX platform, we don't face any challenges as far as the technology is concerned, as far as the platform is concerned.

The challenges are basically the availability of power during the peak hours or the demand of the States.

Rushabh Shah

I was asking more on a business perspective, not as a technology IEX platform.

Satyanarayan Goel

Your question is not clear.

Indian Energy Exchange Limited April 25, 2025

Rohit Bajaj

Asking about the business perspective, not on the technology side of the platform.

Satyanarayan Goel

Challenges on the IEX business?

Rushabh Shah

Yes.

Satyanarayan Goel

Yes, yes, one of the challenge for the business is basically availability of power, surplus power in the market because only when the ample supply of power is there, then only the rates on the exchange platform will be reasonable.

And then also, there should be demand growth in the country.

So as far as demand growth is concerned, we are continuously seeing that, yes, the demand is growing.

India is a developing economy, so demand growth rates is going to be there for the next couple of decades.

But as far as supply of power is concerned, yes, in between, we face a few challenges, particularly the peak summer months, month of April and May.

Otherwise, there is adequate supply of power also and government has made necessary arrangements to ensure to meet the peak demand also.

So I don't see much challenges in that.

(One challenge on the business side is) Participation of distribution companies on the exchange platform because their reliance is mostly on the power purchase agreements.

So, in fact, 85% of the demand they meet through the power purchase agreement, so that is definitely one big challenge and how to bring them on the exchange platform.

And in future also, how to ensure that distribution companies don't get into the PPA, they buy more power from the market.

I think this is something on which we are regularly working and doing the policy advocacy with the government.

Rushabh Shah

Okay.

So my last question is, sorry to harp on this topic of coupling.

So even if coupling were to happen, so why would there be customer loyalty towards IEX like customers trading on our exchange?

Satyanarayan Goel

It is because of the kind of services which we provide and the robust technology platform which we have, on which there has been no problem in the last 17 years and the financial reconciliation settlement, everything we do on time.

And in addition to that, we also provide a lot of data analytics to them.

So I think because of all that only the customers are staying with us.

Even today also, the customers are staying because of that only.

And in future also, I'm sure we will be able to retain a large part of the customer base.

Moderator · Conference Operator

We have our next question from the line of Mohit Kumar from ICICI Securities.

Mohit Kumar

Congratulations on a very good set of numbers.

So my first question is how much is the volume in long-duration contract for FY '25 versus FY '24?

It seems that the TAM volume overall hasn't picked up in this fiscal year.

Is it the loss of market share or decline in the market overall?

Satyanarayan Goel

TAM volume, yes, there is an increase in the TAM volume.

TAM volume on IEX platform were about 10 billion units.

Year before that, also, it was about 10 billion unit.

So almost the same number.

Indian Energy Exchange Limited April 25, 2025

Rohit Bajaj

So what has happened this year is, earlier, when we were talking about TAM volume, it was a combination of conventional as well as green.

So this time, what has happened, the liquidity in the Green Day Ahead Market has increased considerably.

So all the transaction in the Green TAM which was happening last year has actually moved to the Day Ahead Market.

So now the volume that we are seeing in TAM is only conventional.

So in absolute terms, we are not seeing growth.

But if you see since the green part has moved to the Day Ahead Market, in real terms, there is some growth there.

And another reason here is after 2, 3 years, we have seen such a good growth in our Day Ahead numbers.

Now the availability was much better this year.

And whenever you have good availability and the prices were also lower by 15%.

So our Day Ahead Market and RTM market has increased from 86 billion unit last year to 109 billion unit this year.

So since there was tremendous growth in this segment, so TAM, you can say, was a little compromised.

And again, it is because of the macro factors, which is availability and less prices.

Mohit Kumar

Secondly, sir, on the uniformity of contracts in TAM.

I think you mentioned that some order is reserved, right?

I think the CERC direction was given in the October month, right, on the uniformity of contracts.

Where are we right now?

And when do you think this is likely to be implemented?

Satyanarayan Goel

No, they had issued a draft order to ensure some standardization in the contracts and they have invited comments on that.

Comments were given to CERC.

I think we are expecting final order on that any day.

Mohit Kumar

Understood.

My last question, is it possible to help us with the status of market coupling.

Has there been any update from CERC or the regulator?

Satyanarayan Goel

No update on that.

Mohit Kumar

Understood.

Sir, one more last question, if I may squeeze in?

What is the revenues, EBITDA and PAT of IGX for FY '25, sorry?

Satyanarayan Goel

IGX?

Mohit Kumar

Yes.

Satyanarayan Goel

Gas exchange?

Mohit Kumar

Yes, sir, gas exchange.

Satyanarayan Goel

Gas exchange PAT is INR31 crores.

Mohit Kumar

And the revenues and...

Satyanarayan Goel

Pardon?

Mohit Kumar

Revenues for the year, fiscal year?

Indian Energy Exchange Limited April 25, 2025

Satyanarayan Goel

INR55 crores.

Moderator · Conference Operator

We have our next question from the line of Sahil Choudhary from Yashwi Securities.

Sahil Choudhary

So I was seeing our 9-month number, so there's a discrepancy in our investor presentation and in our press release.

So in our investor presentation, it says that in 9 months, we traded 100 billion units of volume and in our press release, it says that we traded around 88 billion units.

So sir, what is the discrepancy there?

Satyanarayan Goel

I think 9 months was electricity plus certificate and subsequently, we have started reporting electricity separately and certificate separately.

Sahil Choudhary

But like 12 billion units of certificate were discrepancy.

Satyanarayan Goel

Pardon?

Sahil Choudhary

Sir, the discrepancy was of 12 billion units.

Satyanarayan Goel

Yes, yes.

We have sold this year in the full year, almost 18 billion certificates.

So in 9 months, almost 12 billion units of certificates were sold.

Moderator · Conference Operator

We have our next question from the line of Subhadip Mitra from Nuvama Wealth.

Subhadip Mitra

My first question is with regard to what you earlier mentioned that I think this year has been particularly productive because of better supply and hence lower prices, and hence, we're seeing higher DAM and spot market-related volumes vis-à-vis TAM, which is, let's say, more or less stagnant.

Now going ahead, if the general view is over the next 2 to 3 years, the demand-supply gap will widen, and possibly, we will see higher shift of volumes from DAM towards the longer-term TAM market.

Two questions over there.

Firstly, in TAM, what I understand is our market share is somewhere around 36%-odd vis-a-vis almost 100% market share that you have in DAM.

So could that be a longer-term risk?

Secondly, in terms of moving towards, let's say, longer-term contracts, let's say, towards the 6- month contract, etcetera, in TAM as and when you get the approval, can that have any working capital related risks for you?

Satyanarayan Goel

The first question is that the large gap between the demand and supply and volume shifting to the Term Ahead Market instead of the DAM.

I think as far as demand-supply is concerned, Government of India is working on ensuring adequate supply of power.

And this year, particularly almost about 10 gigawatt of coal-based capacity is going to be commissioned.

See, because last year, they had planned almost about 14 gigawatt.

Out of that 5 gigawatt was commissioned.

So 9 gigawatt is basically spillover of last year, which is in a very, very advanced stage of commissioning and that is going to be commissioned.

In addition to this 40 gigawatt of renewable and 5 gigawatt of battery storage is going to be commissioned.

Indian Energy Exchange Limited April 25, 2025 So I'm sure with this new additional capacity, there is not going to be any shortage of power.

And that basic assumption that there's going to be a shortage and demand is going to shift from DAM to TAM, I don't think that is going to happen.

And in any case, the shortages also which you see, invariably this happens only for 2 months, which is the month of April and May.

But from June, the monsoon starts and the wind generation starts, so thereafter, the spread is not that critical.

So I don't think that there's going to be any impact on the business as far as the demand and supply is concerned.

Subhadip Mitra

Understood.

Okay.

And sir, on the second one that -- yes, go ahead.

Satyanarayan Goel

And on the second one, CERC is yet to approve our 11-month contract.

And when the contract is approved, I'm sure the margins should take care of all that kind of risk, which you are expecting.

We have a proper margining system and we have thereafter daily payment system.

It is working very effectively in the 3 months contract.

And I'm sure even with 6-month contract also, that should be effective.

Subhadip Mitra

So in these longer-term contracts, the margins will not be limited to the 4 paise that we have in DAM, you might see better margins?

Satyanarayan Goel

No, margins will be only INR0.04 per unit only, INR0.02 from buyer, INR0.02 from seller.

Subhadip Mitra

Okay.

Even in the longer-term contracts, that's what we're anticipating?

Satyanarayan Goel

Yes, yes, yes.

Subhadip Mitra

Okay.

Understood.

Sir, secondly, I just wanted to get your view on this that what we hear is that the Security Constrained Economic Dispatch, SCED, which is currently active for central government-owned plants might be extended towards state government plants, etcetera, through the GRID-INDIA platform.

Does that have any ramifications for IEX in terms of volumes?

Satyanarayan Goel

No, let me first explain this.

SCED is applicable only for the power plants which are scheduled by GRID-INDIA, okay?

And GRID-INDIA is scheduling only Central government generating stations and inter-State IPP stations.

Intra- State SCED is applicable for the State generating stations and IPPs who are supplying power to the State where they are located.

And that will be done by the SLDC of that particular State.

So intra-State SCED will be done by the SLDC of that State.

I mean, SCED by NLDC and intra-State SCED will not have any conflict.

Subhadip Mitra

So it doesn't impact -- yes, go ahead.

Rohit Bajaj

Just one more point here.

SCED is done when all the available markets are closed.

So today, when at national level, when GRID-INDIA is running SCED, it is after the schedules of real- time markets are available, which means the entire thing has been done.

So after you have participated in the market, your schedules are there, you have taken full advantage of the market in terms of meeting your demand or in terms of optimization, then this Indian Energy Exchange Limited April 25, 2025 window operates.

So, if it is going to be there at a State level, this is going to be a win-win.

It is going to be positive for the sector, and it will not have any negative impact on the markets.

Subhadip Mitra

Understood, understood.

Thank you on that one.

And lastly, the financial derivatives also, which are now planned to be introduced on the MCX platform.

How does this impact, if at all, IEX volumes?

Satyanarayan Goel

The direct impact of the financial derivatives will be that there will be some stability in the price.

It will provide some visibility in the price to the generator so that they can make arrangements for the fuel and also some visibility of price for the long-duration contracts.

Subhadip Mitra

Understood.

So again, would that in any manner actually help your volumes because at some point in time, even though financial derivatives need to have delivered volume, right?

So does it help IEX volumes in any manner?

Satyanarayan Goel

I think let the derivative start and then we will see how to leverage that for increasing our volumes.

Moderator · Conference Operator

We have our next question from the line of Lokesh Manik from Vallum Capital Advisors.

Lokesh Manik

My question was on the green market.

A part of the volume is being driven by new installations.

New installations this year were about 80 gigawatts, next year is expected to be 30, 40.

So do you see an impact of that on the growth of green market going forward from 8 BU to, let's say, even if we were to take 20% growth, would this have an impact on growth, the installations coming down?

Satyanarayan Goel

No, no, this year, the renewable sector, the capacity addition was about 29 gigawatt, and next year, we are expecting about 40 gigawatt of renewable capacity addition.

So it is going to increase.

So liquidity in the green market is further going to increase.

Lokesh Manik

And sir, what percentage of this is coming to the market?

I mean, 80% is long-term PPA or 90% is long-term PPA?

Satyanarayan Goel

That depends from case to case.

But in any case, what we have seen is that even the States who are buying green power and whenever they have surplus beyond the RPO obligation, they also sell that green power in the market.

So even if they have the PPA, there are many States who sell green power.

So what is more important is the capacity addition in the country.

So if capacity addition happens, then we will directly or indirectly get benefit of that.

Lokesh Manik

Understood.

And sir, do you see now that green power is traded on exchange and RPO obligations can be done from there, when do you see a slowdown in REC certificates as such?

Because there's a limited capacity that has come up with that route of capacity addition.

Satyanarayan Goel

See, if you look at the RPO compliance number, they are in fact much higher than the renewable power available in the country.

So I don't see any less requirement -- I mean any adverse impact on the REC market.

The RPO compliance numbers are much higher, so there will be enough scope for the REC market also and also increase in the green market.

Indian Energy Exchange Limited April 25, 2025

Moderator · Conference Operator

We have our next question from the line of Devesh Agarwal from IIFL Capital.

Devesh Agarwal

First question, sir, on power derivatives itself.

We have a tie-up with MCX in terms of revenue sharing, what we also read in news there are other exchanges who are looking at this product.

So is this an exclusive contract that we have with MCX, so we can also enter into with other exchanges?

That is one.

And are we ourselves looking at the power derivatives market?

Satyanarayan Goel

We don't have any exclusive contract with MCX, number one.

Number two, as IEX, we are regulated by CERC, and derivatives are going to be regulated by SEBI.

So if we want to get into derivative business, then we'll have to incorporate another company under the jurisdiction of SEBI.

And single product derivative doesn't make any sense.

So that is why we do not want to get into this.

As of now, we don't want to get it to this.

Devesh Agarwal

So that means we can also get...

Satyanarayan Goel

In the future, if we see a large opportunity, maybe we can explore that also.

Devesh Agarwal

Understood.

So does that mean we can also get into a contract with NSE if they are looking to get into the power derivatives market for price referencing?

Satyanarayan Goel

Yes.

As I told you that we don't have any exclusive contract, so that means we can get into any number of parties.

Devesh Agarwal

Understood.

Secondly, sir, can you share segment-wise what would be our market share in FY '25?

Satyanarayan Goel

Our market share in the collective transaction is 99.8%.

And in the other segment, which is the bilateral, DAC plus TAM plus GTAM, percentage is about 35%.

Devesh Agarwal

And sir, REC?

Satyanarayan Goel

REC market share is 60% -- 58.8%.

Devesh Agarwal

So you did mention that the REC inventory is around INR4 crores.

So do you think that the scope for growth in REC volume is limited from here on?

Or you see there is a risk of...

Satyanarayan Goel

No, no, no. Every year, the RECs are getting issued.

Devesh Agarwal

Even on this 1.8 crores number, are we expecting, say, 10% growth in FY '26?

Satyanarayan Goel

Yes, yes, definitely.

Definitely, we are expecting at least this year to trade about 20 billion units of RECs.

Devesh Agarwal

Okay.

And sir, in terms of these new opportunities that you did mention, FDRE, virtual PPAs, BESS, by when will we see actual volumes coming on to the exchange platform from these new opportunities?

Indian Energy Exchange Limited April 25, 2025

Satyanarayan Goel

Things have started.

If you see our green market volumes, that is slightly increasing now.

Now that increase is mostly coming from these things because virtual PPAs also, we find that in one or two cases, they have started operating, and we are getting volume from them.

Maybe Rohit can give you more details about that.

Rohit Bajaj

Yes, close to 1,500 megawatt of capacity under VPPA is already registered with us, and they are selling this power in the conventional market because when you bring VPPA power in exchange, then it is not seen as a green power, it is a conventional power.

And you can see these trends because when we compare our supply available during the solar hours this year versus previous year, you will find there is increase of 10-15,000 megawatt of supply during the solar hours.

So VPPA has contributed that.

And this power is available to us and this power is bidded at a very cheap prices, and this is one reason why the solar prices have come down in this particular year.

Similarly, when FDRE power will come, which has not yet started, but it is again in the various stages of execution, when that power will come, it will be coming under the green market itself.

So VPPA already started.

Other segments, we are waiting to start, and this is not very far.

We are expecting it to come in next 1 to 2 years.

Moderator · Conference Operator

We have our next question from the line of Dhruv Muchhal from HDFC AMC.

Dhruv Muchhal

Sir, in the opening remarks, you mentioned about the URS power, the potential and the actual volume traded.

I missed that, if you can please repeat.

Satyanarayan Goel

Yes.

Every day, we get almost about 100 million units of sale, but the volume cleared out of that is on an average about 15 million, 16 million units.

Dhruv Muchhal

Sir, this comes in the RTM market or the DAM market?

Satyanarayan Goel

This comes both in DAM market and RTM market.

Dhruv Muchhal

Okay.

So as the demand increases, the potential to clear this URS volumes also increases, right?

I mean I'm just wondering why does the volume not clear?

It is because of the lack of demand.

Satyanarayan Goel

Yes, yes, yes.

Correct.

Moderator · Conference Operator

We have our next question from the line of Ketan Jain from Avendus Spark.

Ketan Jain

Sir, my first question was on long-duration contracts.

In FY '24, we did a total TAM volume of around 15 billion units.

And you had mentioned that around 10 billion units was coming from long-duration contracts up to 3 months.

Can you give the same number for FY '25?

Out of 11.1 billion units which we traded in TAM, how much was the long duration contracts?

Rohit Bajaj

The number is same.

We did this year also about 10.5 billion units under the TAM contract, which is long duration contracts.

So last year and this year numbers are same, TAM.

Ketan Jain

But this year, total TAM was only around 11.7 billion, right, sir?

Indian Energy Exchange Limited April 25, 2025

Rohit Bajaj

Yes.

So what has happened here is the DAC segment, which was doing very well till last time, which did about 5 billion unit trade, has reduced to 2 billion unit.

So not much is happening on the DAC side.

And you must have seen the report where we have mentioned these two bilateral segments in one category.

So last time, it was 10.7 plus 5; this time, it is 10.2 plus 2.

So there is reduction in DAC contract, TAM number is more or less same, and the reason I just explained.

The green TAM has moved to green DAM.

So there is some increase in the TAM contracts, but overall number remains the same.

Ketan Jain

Understood, understood.

And sir, what would be the forecast for FY '26 and for TAM long duration?

Rohit Bajaj

Yes.

So, again, it is dependent on the fact, –that we are expecting approval for 11 months contract.

If we get that in the next 2, 3 months, then there is additional 40 billion unit addressable market which is there because that sort of transactions are happening through DEEP platform, which is being done by traders.

So we hope that some part of that, decent part of that, we should be able to convert in the first year itself.

And next 2, 3, 4 years' time, we should be able to convert a major part of that.

So we are expecting good growth.

But again, there are factors like availability of power, power prices and other things which also decides how much distribution company rely on TAM contract and how much on DAM.

Ketan Jain

Understood.

Sir, just one question on the working capital for long-duration contracts, which is for up to 3 months.

How much of margin do we have?

And do we have any receivable risk in these type of contracts?

Rohit Bajaj

So what we do here is in case of whether it is DAM, RTM or TAM, our settlement is done on a daily basis.

So every day, whatever we are supplying, we are collecting from the seller and making this payment to the buyer.

Opposite, sorry.

We are collecting from the buyer and making this to the seller.

Now to ensure that there is enough margin availability in the system, we also rely on bank guarantees and other PMS.

So till now for 3 months contract, there was not even a single case where we have faced any challenge in terms of getting those margins.

And hopefully, when this contract would be launched up to 11 months, the same problem would not be there as well.

And why that problem is not there?

Because buyers are finding this market very, very competitive.

If they compare our prices vis-a-vis prices discovered in the DEEP platform, these are 15%, 20%, 30% lower.

To take advantage of such a low price, they don't mind giving those additional margins, which we are willing to take in the form of PMS also.

So we are really not seeing any challenge on that front.

Ketan Jain

So even in a 3-month contract, we get the payment daily for the power that was traded?

Rohit Bajaj

Absolutely.

For all the contracts, the system is same, daily payment.

Indian Energy Exchange Limited April 25, 2025

Ketan Jain

Okay.

Understood.

Sir, my last question is on the GRID-INDIA's report where the GRID-INDIA had published a short-term adequacy report where they forecast major shortages in May and June.

Given good capacity addition forecast for FY '26 in the near term, how do you see this impacting our volumes if there are major shortages in May and June?

How do you see it impacting our volumes?

And what's your outlook on FY '26 volume growth?

Satyanarayan Goel

I think the outlook for April was also similar, April, May, June.

But fortunately, in the month of April, so far, the volume growth is about 28% on the exchange platform.

So we don't expect a big challenge in the month of May and June also because...

Ketan Jain

So that is because of demand being weak or supply being good, sir?

Satyanarayan Goel

Because of supply being good.

And we also expect that in the month of May, June also with the kind of arrangements which have been made by the government, there will be adequate supply.

Ketan Jain

Understood.

Okay.

So the demand is going to be good, but because of excess supply, the prices will be low?

Satyanarayan Goel

Yes.

I mean there could be some impact on the price, but...

Ketan Jain

But relatively, the supply would be better.

Satyanarayan Goel

Yes.

Moderator · Conference Operator

We have our next question from the line of Raghav Bhutoria from Lindsay Securities.

Raghav Bhutoria

Sir, we have seen a lot of growth in volumes in IGX if we compare fourth quarter of last year to this year.

So what is the reason for that?

Satyanarayan Goel

Yes, IGX volume increase is mainly because we have Reliance and ONGC have started production of their domestic gas and they are selling a good part of that to the market also.

Raghav Bhutoria

So we should expect this volume to keep on improving from here?

Satyanarayan Goel

Yes.

In case of ONGC, we expect the volumes to increase further.

ONGC is, as of date, producing almost about 2 mmscmd per day whereas the target for this year is about 5.5 mmscmd.

So it's more than double.

So we expect good volume from them this year, further increase this year.

Moderator · Conference Operator

We have our next question from the line of Chirag from Keynote Capital.

Chirag

Most of my questions are answered, but I have a couple of book-keeping questions.

Sir, I wanted to understand, what is the part of trading margin deposits as a part of financial liabilities?

And out of INR900 crores, what is payables and what is trading margin deposit?

Satyanarayan Goel

Yes, I will request Mr. Vineet Harlalka, our CFO, to respond to this.

Indian Energy Exchange Limited April 25, 2025

Questions and answers

· Research Analyst

“Indian Energy Exchange Limited Q4 FY '25 Results Conference Call” April 25, 2025

If you look at the overall, the settlement financial assets and liability, so as on the 31st of March, the total financial which are receivable obligation, the paying amount receivable is around INR220 crores.

And the total amount, which is payable is around INR967 crores.

Chirag

Sir, just wanted to understand from the perspective of business, why do we have such high payables because overall, our sales are almost INR535 crores?

Basically this time what happened, because there was a trading holidays in the 31st March and 2, 3 days so that's why the settlement become outstanding, that's why this amount increased significantly during this year.

Chirag

Okay.

So this is a one-time effect and now our books will again come back to normalized levels and...

and banks were not working, that's why.

Chirag

Okay.

And if I just remove the settlement trading margin deposits and the payables, we would have around approximate INR1,000 crores worth of cash and mutual funds, is it correct?

Yes.

Chirag

Sir, I just wanted to understand are you looking at some kind of an acquisition at this moment?

I just wanted to understand what is the reason for us, being the largest player in the industry, having such high cash available on the books?

Satyanarayan Goel

We are looking for some diversification opportunity.

And as and when something materializes, we'll come back to you.

Chirag

Okay.

And sir, secondly, I wanted to understand, even in the last conference call, I had a question related to dividend payout.

Did the Board get a chance to talk about the slab-based dividend policy?

Or are we going to keep continuing 65 percentage dividend policy going forward, too?

Satyanarayan Goel

We distribute more than 50% of the profit in the form of dividend and we have been distributing about 60%, 65%, 70% kind of profit.

So this year also we have distributed 65% of the profit in the form of dividend.

And dividend this year has been INR3 per share.

Last year, it was INR2.5 per share.

Chirag

No, sir, I agree to the point.

So I just wanted to understand, did the management get a chance to talk about the change in dividend policy from the 60, 65 percentage to a slab based policy?

Because I just wanted to understand even if you are looking for acquisition, INR1,000 crores worth of acquisition, are we looking at that kind of size of acquisition to diversify?

Look, the last 5 years, our payout has been consistently increasing.

And definitely, Board, if they see there is no good opportunity coming, definitely, the Board will consider, look out for the staggering payment or the higher payment of dividend.

Chirag

Perfect.

Sir, my last question is on the new exchange that we're talking about, the coal exchange.

In electricity, I understand the product is same.

But in case of coal, the product will be different.

Indian Energy Exchange Limited April 25, 2025 So I just wanted to understand, are there initial thoughts about how we are going to make sure that the quality of product which is traded is going to be of the quality which the receiver is going to receive.

So I just wanted to understand your thoughts on that.

Satyanarayan Goel

Number one, on the coal exchange, it is work in progress.

First of all, Government of India itself will have to do amendment in the act and thereafter, they will have to issue the regulations, and then we will apply for it.

Second is, as far as these kind of problems are concerned because coal is not a homogenous commodity so there are many challenges, not only the quality, quantity, transportation, these are challenges there in that.

And we will do the product designing in such a manner that there is no risk on the exchange.

Because exchange is a technology platform, we cannot take this kind of risk.

So maybe the buyers will have to take the delivery from the seller which is going to be the hub and based on the third-party sampling.

Chirag

Fair enough.

Sir, one of the earlier participant asked about the market share for FY '25.

Will it be possible for you to give the market share detail segment-wise based on FY '24?

Satyanarayan Goel

Yes, our market share in electricity is about 84.2%.

In the in the collective transaction, which is I-DAM and RTM, it is 99.8%.

And in case of the bilateral transactions, it is about 35%.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, that would be the last question for today.

And I now hand the conference over to the management for closing comments.

Rohit Bajaj

Thank you, friends.

I would like to thank each one of you for being part of today's call.

Throughout this fiscal, we witnessed efforts from the government and regulators to establish a favorable policy and regulatory climate to develop the energy sector.

We at IEX remain committed to contribute to the development of a sustainable and energy-efficient future of India.

Have a wonderful evening.

Thank you once again.

Moderator · Conference Operator

Thank you.

On behalf of Axis Capital, that concludes this conference.

Thank you for joining us, and you may now disconnect your lines.